The Beauty of God -- Precious Metals Holding

The Lord has given us another beautiful day in San Antonio. His beauty is reflected in the Boganvian in my front yard. We can see the beauty of the Lord all around us if we just look.
God is a God of beauty and love. He is faithful to those who know and live under His covenant. What a joy it is to know and be loved by the Sovereign God of all. I pray that each of you knows and serves the Lord Jesus Christ.

Even though He seems to be punishing America, because, as a nation, we no longer honor and serve Him, He is showing us His judgment to bring us back to Him. He ever brings His people back to Himself, even though we are disobedient from time to time. Let us pray for forgiveness and turn back to Him today.

Gold, though off a bit from yesterday's run toward 960, is holding quite strong. It is now 955.20 on a down tick.

Both of the, above graphs show that the mining stocks are making a good showing with the increase in gold price since Wednesday. Nevertheless, my trailing stops on both VGZ and HMY were hit. Both were sold profitably, but such sales are the down side of using stops. Prices are currently, as follows: DROOY last at 9.55; HMY 11.99, and VGZ 2.07. All are holding well.
Silver at 13.55 on a down tick has not had the volatility of the gold. It is holding well for the present.

From Reuters:

China backs talks on dollar as reserve -Russian source

Thu Mar 19, 2009

By Gleb Bryanski

MOSCOW, March 19 (Reuters) - China and other emerging nations back Russia's call for a discussion on how to replace the dollar as the world's primary reserve currency, a senior Russian government source said on Thursday. Russia has proposed the creation of a new reserve currency, to be issued by international financial institutions, among other measures in the text of its proposals to the April G20 summit published last Monday. Read it HERE.

Many have said correctly that as the dollar goes, so goes America. We have enjoyed for decades since WWII the privilege of having the reserve currency of the world. I have been warning that this could be coming. Now there are more rumbles about an end to the dollar reserve.

This from Gary North's March Remnant Review adds to my comments, above: "When money dies, society is undermined. Almost everyone loses. People's former lifestyles disappear."

From the Gold Forecaster as posted by Kitco>

Central Banks are Buying Gold for their Reserves Now!

By Julian D.W. Phillip March 19, 2009

It is clear now that central banks are buying gold for their reserves. Here is a brief history leading to today and the present position of central banks as they turn to buying gold.

Massive Gold Sales!

From the early 1980’s and for the next 20 years gold was under the threat of massive sales from the world’s central banks. Many commentators reported that the overhang of gold above the ‘open’ market was so great that such sales would eventually lead to central bank reserves in the developed world having no gold at all. Central Banks had further worsened the situation by loaning gold to mining companies, through the bullion banks, allowing them to finance gold production to a far greater extent than warranted by the price of gold during that time. This acceleration in the production of gold allowed the gold price to be pressed down $850 to $275, the point at which Britain, at the instruction of the current Prime Minister Gordon Brown instructed that Britain sell the bulk of its gold reserves. From the turn of the millennium this perspective changed dramatically. Read it HERE.

From Bloomberg:

Accounting Brothel Opens Doors for Banker Fiesta:

Jonathan Weil

March 19 (Bloomberg) -- The banks demanded that the accountants give them leeway in how they report losses to investors. The accountants responded by giving away their souls.

This week, the Financial Accounting Standards Board unveiled what may be the dumbest, most bankrupt proposal in its 36-year history. If it stands, the FASB ought to change its name to the Fraudulent Accounting Standards Board. It’s that bad.

Here’s what the board is floating. Starting this quarter, U.S. companies would be allowed to report net-income figures that ignore severe, long-term price declines in securities they own. Not just debt securities, mind you, but even common stocks and other equities, too. Read it HERE.

And our governmental officials always condemn firms for "cooking the books." What is this, but more of government deception to confound the citizens they are to protect. Do you really want more government regulation? It has never been "even handed" and never will be.

A neat quote from Harry Browne reported by Casey's Daily Resource Plus:

A black market is a free market operating against the wishes of the state. - Harry Browne

For over a century there has not been a truly free market in the world except in the market for illegal drugs. As Browne points out, there may have been some black markets, as well. However, all of these free markets operate in danger of discovery by the state. Thus, there is a great risk that most of us would rather not take. All other markets have operated under the pressure of state intervention and differing degrees of central planning. We are now seeing the failure, not of the capitalistic free market, but of the central planning superimposed upon the theoretically capitalistic markets.

Best to each, Doug